Surplus Property Policy
The purpose of this policy is to help ensure that consistent fiscal and environmental procedures are followed to dispose of surplus Brigham Young University–Hawaii (“BYU–Hawaii” or “university”) property, thus protecting the university and its employees.
The university will dispose of, sell, transfer, or donate surplus property in a fiscally and environmentally responsible manner in accordance with local, state, and federal regulations.
Surplus property procedures are initiated by cost center personnel by submitting a Surplus Property Request Form, located at https://financialservices.byuh.edu/fixed-assets. Designated Financial Services (FNS), Campus Receiving & Distribution, and Office of Information Technology (OIT) personnel are responsible for processing surplus property requests.
Any employee who disposes or sells university property for personal gain or favor, or not in compliance with this policy, may be subject to disciplinary action. This policy applies to all BYU–Hawaii faculty, staff, and students.
3.1 Surplus Property Procedures
The university is committed to managing surplus property (e.g., used furniture, equipment, computing devices, vehicles) in a manner that is fiscally responsible, reduces harmful environmental impacts, and promotes the university’s reduce-reuse-recycle philosophy. These surplus property procedures explain the processes and authorizations needed to remove or dispose of university surplus property from premises, promote alternative internal uses, and reduce the university’s storage burden.
University Property: Any property or materials purchased with university funds or gift funds, donated to the university, or acquired for the university through other means.
Surplus Property: Any equipment, furniture, scrap or salvaged materials, or other tangible property that is no longer needed by a university cost center, regardless of its existing condition or estimated value.
Cost Center: A budgetary organizational unit (department) within the university in which operating expenses are tracked. Each unit has at least one cost center manager (such as a manager, director, dean, etc.) who has fiscal responsibility for the unit.
OIT Computing & Electronic Devices: Computers (desktop & laptop), monitors, printers, scanners, external hard drives, UPS back-up units and batteries, iPads/tablets, IP phones, projectors, and web cameras and similar technology items are surplused by OIT.
I. Declaration of Surplus Property
Cost center managers or their designees may declare property as “surplus” that is no longer useful to their cost center by submitting a Surplus Property Request Form with proper documentation and approvals.
Surplus options include the following:
a) Discard (for items in poor condition, non-usable, or that have minimal re-sale value),
c) Transfer to another BYU–Hawaii cost center,
d) Trade-in value for purchase of a new asset, or
e) Donation to a non-profit organization.
A Surplus Property Management Team comprised of personnel from FNS, Campus Distribution Services, and OIT departments has the responsibility of facilitating all surplus procedures including the following:
a) Collecting information and approvals,
b) Arranging pickup and transport of Surplus Property,
c) Determination of the method by which Surplus Property will be disposed,
d) Disposing of Surplus Property, and
e) Accounting for surplus-related financial transactions and archiving support documents for audit purposes.
Cost center personnel responsibilities include the following:
f) Providing accurate and sufficient information on the Surplus Property Request Form;
g) Preparing Surplus Property for pickup by ensuring it is in relatively clean condition; gathering all existing components, cords, keys, etc.; removing contents (files, personal property, etc.); and removing any hazardous materials (see section VI below).
• Departments are not allowed to deliver or haul Surplus Property without the pre-approval of or pre-arrangement with the Surplus Property Management Team.
III. Surplus Property Disposal Fees
Cost centers are not charged disposal fees for routine removal and disposal of Surplus Property. In rare situations where the disposal requires specialized equipment, processing, or expertise, the cost center will bear the burden of these additional costs.
IV. Sale of Surplus Property
Surplus Property that has a reasonable market value will be offered for sale. All sales are final and are sold “as is.” At the discretion of the Surplus Property Management Team, one or more of the following methods may be used:
a) Campus Receiving & Distribution private sales to campus departments and/or sales to the public,
b) BYU–Hawaii Store public sales,
c) Solicitation of sealed bids by advertising surplus items on university websites and via email bulletins,
d) Utilizing external online auctions and social network sites to market high-end or specialty items to a broader group of potential buyers, or
e) Other fiscally responsible and reasonable methods.
If Surplus Property is not sold within a 30-day period, the following options may be pursued:
f) The sale price may be marked down and the item offered for sale for an additional 30 days,
g) Stored and sold at a later date,
h) Donated to a non-profit organization or school or given away at no cost as an alternative to landfill disposal, or
All sales transactions will be accompanied by a two-part sales receipt, with one copy issued to the purchaser and the original retained by the Surplus Property Management Team. University employees are eligible to purchase Surplus Property from their cost center only if the ownership of the property is first transferred to the Surplus Property Management Team. All Surplus Property payment transactions, including the collection of appropriate taxes and issuance of a sales receipt, will be conducted by personnel from either the FNS Cashier’s Office, the BYU–Hawaii Store, or the Surplus Property Management Team.
Proceeds from the sale of surplus property from appropriated (Fund 10) cost centers are credited to the university general fund. Proceeds from items sold by auxiliary (Fund 20) cost centers are credited back to the auxiliary cost center. Fleet Services will retain sales revenue from all vehicle sales.
V. Unique Items and Items of High Resale Value
Surplus Property that is unique or may have a high resale value (e.g., musical instruments, lab equipment, artwork, historical treasures, etc.) should typically be sold either by sealed bid or via external auction or social media website to maximize opportunities of finding a suitable buyer. Cost center personnel may know of resources or contacts that may be helpful in pursuing potential buyers, and this information should be included on the Surplus Property Request Form.
VI. Disposal of Hazardous Materials and Equipment
Laboratory equipment and items such as refrigerators, freezers, centrifuges, sterilizers, blood counters, photo spectrometers, and similar equipment that may contain or have come into contact with Freon, mercury switches, batteries, or other potentially hazardous substances or chemicals must be marked as “hazardous” on the Surplus Property Request Form, regardless of value.
Cost center managers are responsible for ensuring that all hazardous materials have been properly removed and that reasonable means have been taken to clean and decontaminate the equipment by removing radioactive, biohazardous, chemical, and any imbedded hazardous materials, all in compliance with applicable laws and regulations.
Safety protocols for decontaminating equipment may be sought from Campus Safety & Security. An inspection by personnel from the Safety & Security office will validate that proper decontamination and cleaning have been performed prior to authorization of disposal, transfer, or sale of equipment that had contained or been in contact with hazardous materials.
VII. Registered Equipment
Fleet Services has stewardship for and manages all university vehicles, carts, and trailers that are registered and licensed with the Department of Motor Vehicles. Fleet Services personnel are responsible for managing the transfer of all vehicle registrations.
Cost center managers from other cost centers that sell or dispose of any equipment that is registered or licensed by a government agency, licensing bureau, or other agency, must deliver all relevant registration documents, titles, and forms to the Fixed Asset Accountant at FNS at the time the Surplus Property Request Form is submitted.
VIII. Disposal of University Computing Devices
The university must manage surplus computing devices in an environmentally and fiscally responsible manner. In addition, used computing devices may contain stored data and licensed software that are at risk of unauthorized use. These risks include potential violation of software license agreements; unauthorized release of student/patient information; and inadvertent release of NetID and password combinations, financial information, and other personal or sensitive information. All information must be rendered unreadable and unrecoverable by OIT staff through secure erasure or destruction before any form of disposal, recycling, sale, or reuse of the computing devices occurs.
In general, computing devices have an average life of three to four years. This should be an important factor in determining whether a computing device is dispositioned for surplus.
The majority of campus computers and monitors are funded from appropriations and managed and maintained by OIT staff. OIT Client Services Representatives (CSRs) will retrieve and dispose of the old computers, monitors, and other devices they manage when new equipment is delivered and installed. Cost center personnel do not need to submit a Surplus Property Request Form for OIT equipment.
Cost center personnel should however, submit a Surplus Property Request form for any computer and electronic equipment that was purchased with cost center budget, and that is not managed by OIT. Examples may include monitors, printers, scanners, external hard drives, UPS back-up units and batteries, iPads/tablets, projectors, and web cameras. Cost Center personnel may inquire with their CSR if they are not sure if a particular monitor, printer, scanner, or other device is part of the OIT program.
IX. Requests from External Organizations for Surplus Property Donations
Occasionally, the university is in a position to consider donations of Surplus Property to schools, charitable organizations, and community service groups.
Consideration of donation requests is at the sole discretion of the university, and such requests are subject to availability, need, and alignment with the university’s goals and mission. Just because a donation was approved previously does not guarantee similar requests will be approved in the future. Any surplus property being considered for donation should have no remaining significant value to the university.
Requests and inquiries should be addressed as follows:
- Requests for surplus property donations from the university must be submitted in writing on the organization’s official letterhead and signed by an officer of the organization. These requests may be mailed to the assistant to the president, university Communications, BYU–Hawaii #1952, 55-220 Kulanui St. Bldg 5, Laie, Hawaii 96762-1293 or scanned and emailed to firstname.lastname@example.org. The request should include both a contact phone number and an email address of the organization’s requesting officer.
- The Assistant to the President will forward bona fide requests to either the Chief Information Officer (CIO) (for computer and electronic equipment), or to the university controller for all other equipment.
- The CIO or controller evaluates the donation request and confirms availability of potential surplus equipment with either IT Operations, CDC, or cost center personnel.
- The CIO or Controller provides their recommendation back to the Assistant to the President regarding whether or not to satisfy the donation request.
- The Assistant to the President, may coordinate with the President or other members of the President’s Council for a decision. The CIO or Controller, if necessary, is notified of the decision.
- The CIO or Controller, or someone designated by them, responds to the requesting organization, and if approved, provides contact information for those with whom they can work with regarding the approved donated property.
Only the President’s Council may authorize exceptions to this policy.
4. RELATED POLICIES AND PROCEDURES
Policy Owner: Director of Financial Services / Controller
Executive Sponsor: Administrative Vice President
Approved by President’s Council: 27 January 2021
Full revision history maintained by Human Resources.